$15.3bn Was Used to Steady The Naira in 2022, CBN Claims

The Central Bank of Nigeria (CBN) has said it used $15.3bn to steady the value of the naira from January to October 2022.

This was disclosed in the banking sector regulator’s monthly and quarterly economic reports on foreign exchange market developments.

The reports made known that $4.86bn, $4.81bn and $4.18bn were shot into the economy during the first, second and third quarters while $1.46bn was injected in October.

The report further explained that “total foreign exchange sales to authorised dealers by the bank, at $4.86bn, decreased by 5.8 per cent, compared with the previous quarter’s level.

“Disaggregation shows that foreign exchange sales at interbank/invisibles and SMIS windows declined by 16.9 per cent and 10.8 per cent to $0.46bn and $1.79bn, respectively, relative to the levels in the preceding quarter.

“Similarly, SME interventions and sales at the Investors & Exporters window, decreased by 2.0 per cent and 26.7 per cent to $0.38bn and $1.41bn, compared with the amounts in the preceding quarter.”

The second quarter saw a drop in foreign exchange as explained in the report.

“Total foreign exchange sales to authorised dealers by the bank at $4.81bn, decreased by 0.9 per cent, compared with the level in the preceding quarter.

“Disaggregation shows that SME interventions and sales at the investors & exporters window declined by 8.6 per cent and 41.3 per cent to $0.34bn and $0.83bn, respectively, relative to the preceding quarter.

“However, interbank/invisibles and SMIS windows, increased by 5.3 per cent and 14.7 per cent to $0.48bn and $2.05bn, compared with the amounts in the preceding quarter.”

Meanwhile in the third quarter of 2022, there was a further drop in numbers.

“Total foreign exchange sales to authorised dealers by the Bank decreased in the review period. Foreign exchange sales at $4.18bn, decreased by 13.1 per cent, below the level in the preceding quarter.

“A disaggregation shows that foreign exchange sales at the Secondary Market Intervention Sales and Investors’ and Exporters’ windows, decreased by 10.5 per cent and 4.3 per cent to $1.83bn and $0.79bn, respectively. Similarly, matured swap contracts fell by 48.9 per cent to $0.57bn, relative to 2022, Q2.”

However, the CBN added that sales at the Small and Medium Enterprises and interbank/invisibles windows increased by 32.4 per cent and 10.0 per cent to $0.46bn and $0.53bn, respectively, relative to the levels in the preceding quarter.

In October, the CBN said, “Total foreign exchange sales to authorised dealers by the Bank was $1.46bn, an increase of 31.7 per cent, relative to $1.11bn in September.”